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Each of the Following Is a Possible Reason Why the Gold

Question 17

Multiple Choice

Each of the following is a possible reason why the gold standard in operation at the time of the Great Depression was a much less secure monetary system than the previous gold standard except


A) everyone knew that governments could abandon their gold parities in an emergency.
B) everyone knew that governments had taken on the additional responsibility of trying to keep interest . rates high enough to keep inflation low.
C) countries after World War I held their reserves in foreign currencies instead of in gold.
D) the post-World War I surplus economies, the United States and France, did not lower their interest rates as gold flowed in.

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